London Capital Hldgs Share Discussion Threads

[tomboyb] 12/12/2017 12:47

Managed to pick up a few this morning -

Not showing but bought on share price weakness -

[aleman] 25/10/2017 17:44

VIX now 13+. Some very mixed news coming through in Q3 US earnings season.

[aleman] 25/10/2017 16:25

Volatility looks to be picking up again. VIX 12 and rising. I could see H2 being better than H1.

[dusseldorf] 05/10/2017 12:29

thenighthawk - how much does Blue Horseshoe love London Capital Group?

[thenighthawk] 03/10/2017 08:08

Actually LCG has employed a German country manager and is explanding elsewhere. That´s a good sign. Business expansion means they are looking for revenue generation in other geographical areas and not focusing anymore on highly competitive UK market. Margins in NON UK markets are far, far better, too!

A little bird is telling me that huge business is coming in from the instiutional side....

Stay tuned, I think this stock will be a rocket star!

[topvest] 28/9/2017 21:20

Results showed a glimmer of light at the end of the tunnel. Increased volatility would no doubt bring them into profit pretty quickly. Still a basket case for me, but chance of some recovery so why sell?

[aleman] 28/9/2017 10:23

Dusseldorf - that figure is flattered by working capital changes. I've already quoted you the figure prior to working capital moves which showed operating cashburn fall from £2.048m to £583k. That's an underlying fall of 71.5% still and suggests it won't take a great deal to get to operational profitability.

It would be interesting to know how much of costs are down to marketing, which seems to be on the rise. They may be getting close enough to breakeven that they can blow the rest of the balance sheet cash on a bigger marketing campaign, knowing it speeds growth and regenerates the cash in profitable increases in trading, all other things being equal.

[dusseldorf] 28/9/2017 10:00

A beacon of light exists in 'Cash (used in)/generated by operating activities':
H1-17 (815) H1-16 (6,202)

Thats a 87% reduction(!)

[dusseldorf] 28/9/2017 09:57

Aleman - Solid progress, but somewhat disappointed in administration expenses.
We were promised reductions, but expenses are higher than they were last year. I guess we need FY to see the full break-down - perhaps Marketing spend has significantly increased and off-set (for the timebeing at least) any benefit from the cost reduction initiatives:

"The full benefits of the cost savings associated with the restructuring exercise in 2016 are expected to materialise in the next financial year."

"Administrative costs remain on the higher side at GBP27.2m for the period (2015: GBP24.8m) but the Company expects to see the benefits of its significant cost reduction initiatives that took place during 2016 in the next financial year.

At the same time, the Company has also taken advantage of these resources and talent pool by re-locating many of its processing and operational functions to Cyprus which will additionally reduce costs for the Group. The full benefits of these cost saving initiatives are expected to be seen in 2017.

[aleman] 28/9/2017 09:34

Actually, there does look to be plenty of selling so it doesn't look like a stock shortage. But why are they selling?

The results are better than I expected. I figured they had a year before they might run out of cash. Now, 6 months further on and it looks like it's risen to 18 months to two years on reduced cashburn. The key is cashflows at the operating level, where the outflow dropped from £2.048m to £583k. The reduction means the company has more time to build its customer base and wait for volatility to return - which looks increasingly likely on current economic and political trends. Even ignoring that and expecting continued low volatility, it now looks like only modest growth could see the company into positive operating cashflows in 2018 anyway. A fundraising now looks unlikely to be needed in the near term and might well only be modest even if they did have one.

LCG might not be completely out of the woods yet, but the prospects of a bright future have greatly improved - and that ignores an opportunistic bid from a larger player. The customer base and duplicated costs could make it very valuable for a bidder, who would also benefit from elimination of a rising competitor and possible gains of technical software and marketing skills. I suggest the shares are possibly seriously undervalued in a bid scenario and are starting to look a bit undervalued on simple trading prospects. The market makers must have agreed as they marked the shares up to start with. I believe this enough that I have bought some more. Please do your own research, though.

[aleman] 28/9/2017 08:13

And now they've opened the spread up which, in small caps, often means they're short of stock.

[aleman] 28/9/2017 08:09

Very good results. I'm surprised they were not marked up more at the open (2.5-3.0) and even more surprised they fell back again.

[dusseldorf] 21/9/2017 14:45

IG index reporting strong revenue off fewer clients:


Let's hope LCG can report strong revenue off more clients(!)

[fillipe] 14/9/2017 15:24

Stirring there very well indeed, on ultra-small.

f

[aleman] 14/9/2017 14:25

The 50-day average is turning up as the share price threatens to cross the 200-day. It's done this a few times before but the more times it does it, the more likely it is to break through and hold. Buying pressure looks to be on the rise and the chart is getting interesting. I don't expect fireworks, though. I doubt the fundamentals will justify it. But it would be nice if the 200-day turned to support on reasonable results that show cash burn continues to ease.

[aleman] 13/9/2017 17:31

I've got a bad feeling about crypto currencies. They can't keep growing at current rates and not cause problems in investment markets. Another year like the last one and displacing old money will start to cause them to inflate as the same amount of old money chases fewer transactions. Cryptos volatility will then feed into financial markets and frauds will cause more panics, hence the need for regulation or abolition.

[dusseldorf] 13/9/2017 17:01

LuckyMouse - Indeed a bashing. I think I am pursuing change bank ICO, but waiting whilst Ether takes a beating before converting cash to Ether and participating. Long-term I think crypto will gradually replace fiat currency for an array of investments and companies/banks that do not appreciate the demand will lose business if they don't accommodate it, so the trend over the years will be up. I'm also 'mining' bitcoin with open ended hash rate mining contracts, the lower the price goes, in theory the network hashrate (which has consistently increased 13% /month) will decline lengthening the period of time my contracts remain 'coin' profitable.. so the price decline hopefully benefits me. we'll see, I'm still fairly new to crypto.

Fag packet stuff ->If you equate Bitcoin to 'the pound', if you add up all assets owned in sterling its somewhere between 1-1.5 trillion (inc. property). If Bitcoin assets (given bitcoin has a fixed issuance) reached 1trillion, and given it's a globally accessible currency 1trillion in assets isn't as far fetched as it seems, the coin price would be in excess of $50,000.

I asked LCG support about whether they are planning to allow trading in crypto currencies and 'no plans yet' was the response. IG already allow it for ETH/BIT, so I think ultimately to remaining attractive they will need to.

Normal shares still sit at the core of my activities and LCG is the largest single holding, I still firmly believe the markets are topping out and something is going to trigger fluctuations - perhaps the trigger is the crypto money flow.

China is creating turbulance in Bitcoin, but if you look at Hashrate allocation, China is currently producing 21% of all the worlds bitcoin.. The government must be involved in production to a certain extent (IMO).

[luckymouse] 13/9/2017 15:24

I only use BTC as a risk on/off measure - cryptos getting a bit of a bashing at the mo i suspect after the big rise

[qs99] 13/9/2017 14:02

Dusseldorf, take a look at BLU and Satoshipay link with IOTA, not for the faint hearted but seems to be heading in the right direction and should have news in the next month or so on their testing with IOTA etc....DYOR

[dusseldorf] 13/9/2017 13:58

LuckyMouse - Do you follow crypto currencies? I'm thinking of participating in 'change bank' ICO (circa £40-50m mcap (initial coin offering) paying in Ether in exchange for change bank coin (a 1 for 500 ratio Ether > Change Coin). Its an interesting prospect for a new bank that provides worldwide finance to developing countries in crypto currency, yet gives you a current account and credit card that deducts from your crypto account anywhere that accepts mastercard, but also pays you in currency for every transaction you make (A bit like Amex cashback). They're planning on funding ventures, loans etc... Only the brave or foolish I guess it's incorporated in Estonia which is actually a government world leader in digital currency backing.

The whitepaper makes for an interesting read:

[dusseldorf] 13/9/2017 13:49

LuckyMouse - Thanks for the luck - Timing the precise lowest point is tricky, I prefer getting in early. Not sure I could buy my 2.2m easily at these levels (sub3p average), so happy to be holding them already.

[qs99] 13/9/2017 13:47

interesting if it can break the SMA200, results may help, been interesting watching this one, unrestricted cash: is it enough to see them to profitability?

[luckymouse] 13/9/2017 13:19

Bit of a lesson here in waiting for the turnaround news & strong volume to come in first Dusseldorf - hope she picks up for you

[dusseldorf] 13/9/2017 11:27

Results due in the next 11 trading days, likely 29th September. Could an improved trading result (assuming it is(!)) push us through the 200day SMA (finally) and spark a new change in sentiment?